Transactions
December 21 2012
KippsDeSanto & Co. Advises NEK Advanced Securities Group, Inc. on the Sale of its Special Programs Group to Cubic Corporation
KippsDeSanto & Co. is pleased to announce the sale of NEK Special Programs Group (“NEK SPG”), the Special Operations Forces (“SOF”) training business of our client, NEK Advanced Securities Group Inc., to Cubic Corporation (“Cubic”). The transaction expands Cubic’s national security business with respect to advanced tactical training, surveillance and counter surveillance, mission planning, and personnel recovery, providing access and placement to a coveted and difficult-to-penetrate customer set.
With significant operations in Colorado Springs, CO, and Fayetteville, NC, NEK SPG provides highly specialized, mission-critical training in support of the four component commands of United States Special Operations Command (“USSOCOM”), the Joint Special Operations Command (“JSOC”), select Theater Special Operations Commands (“TSOCs”), and a variety of intelligence community customers. NEK SPG provides hands-on, practical training, tailored for personnel involved in highly stressful and hostile environments, creating an unparalleled training environment that simulates real-world Unconventional Warfare (“UW”) activities. The Company delivers comprehensive programs and services that utilize a full spectrum of commercial and government sector assets to address the increasing demand for UW, Counterterrorism, and Counterinsurgency training required by SOF, the Department of Defense (“DoD”), and other elements of the U.S. Government. NEK SPG’s broad portfolio of capabilities, coupled with extensive operational experience within the key components of USSOCOM, allows for unique visibility and understanding of emerging mission requirements at a tactical, operational, and strategic level.
We believe this transaction demonstrates several key trends in the aerospace/defense and government services M&A environment:
• Highly specialized solutions providers in mission-critical areas remain in high demand despite overall budget and funding environment concerns
• Shifting budgetary allocations and pressures continue to prompt companies to supplement growth through strategic acquisitions within priority pockets of budget funding (e.g. SOF)
• Strategic buyers continue to target M&A opportunities that address strategic gaps or augment an existing presence with specialized solutions that cannot be easily replicated internally
LEAD INVESTMENT BANKERS
Bob Kipps
Michael J. Misantone
KippsDeSanto & Co. is pleased to announce the sale of NEK Special Programs Group (“NEK SPG”), the Special Operations Forces (“SOF”) training business of our client, NEK Advanced Securities Group Inc., to Cubic Corporation (“Cubic”). The transaction expands Cubic’s national security business with respect to advanced tactical training, surveillance and counter surveillance, mission planning, and personnel recovery, providing access and placement to a coveted and difficult-to-penetrate customer set.
With significant operations in Colorado Springs, CO, and Fayetteville, NC, NEK SPG provides highly specialized, mission-critical training in support of the four component commands of United States Special Operations Command (“USSOCOM”), the Joint Special Operations Command (“JSOC”), select Theater Special Operations Commands (“TSOCs”), and a variety of intelligence community customers. NEK SPG provides hands-on, practical training, tailored for personnel involved in highly stressful and hostile environments, creating an unparalleled training environment that simulates real-world Unconventional Warfare (“UW”) activities. The Company delivers comprehensive programs and services that utilize a full spectrum of commercial and government sector assets to address the increasing demand for UW, Counterterrorism, and Counterinsurgency training required by SOF, the Department of Defense (“DoD”), and other elements of the U.S. Government. NEK SPG’s broad portfolio of capabilities, coupled with extensive operational experience within the key components of USSOCOM, allows for unique visibility and understanding of emerging mission requirements at a tactical, operational, and strategic level.
We believe this transaction demonstrates several key trends in the aerospace/defense and government services M&A environment:
• Highly specialized solutions providers in mission-critical areas remain in high demand despite overall budget and funding environment concerns
• Shifting budgetary allocations and pressures continue to prompt companies to supplement growth through strategic acquisitions within priority pockets of budget funding (e.g. SOF)
• Strategic buyers continue to target M&A opportunities that address strategic gaps or augment an existing presence with specialized solutions that cannot be easily replicated internally
LEAD INVESTMENT BANKERS
Bob Kipps
Michael J. Misantone
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